Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Another Stimulus-Backed Green Energy Company Goes Broke

September 18, 2013 by  

Another Stimulus-Backed Green Energy Company Goes Broke
SPECIAL

ECOtality, the San Francisco-based “leader in clean electric transportation technologies” (they make electric car charging stations), filed for Chapter 11 bankruptcy protection Monday after laying off employees last week and repaying $96 million out of a total $115 million in stimulus money awarded by the U.S. Department of Energy in 2009.

Trading in the company’s stock was halted Tuesday morning; a single share of ECOtality stock can currently be had for 23 cents. The bankruptcy filing is pessimistic, noting the “Company’s common stock will have very little or no value given the amount of the Company’s liabilities compared to its assets.”

Under the filing, ECOtality will receive a $1.25 million loan from Nissan, an unsecured creditor, and will continue to operate until its remaining assets have been sold off.

Critics of the cozy relationship between the Administration of President Barack Obama and the green energy sector told The Washington Times ECOtality’s demise is only the latest example of how government has no business putting its thumb on the competitive scales that weigh a company’s viability in the private marketplace.

“Government is terrible at picking winners and losers for a simple reason: Politics always interferes,” energy policy expert William Yeatman, of the Competitive Enterprise Institute, told The Times. “That news is only the latest costly reminder that Energy Department bureaucrats shouldn’t be running a taxpayer-backed investment bank for green energy.”

More from the same article:

Jonathan Read, the company’s former CEO, styled himself as a “political beast.” Read boasted about his political connections, and received bonus payments contingent on ECOtality winning DOE support.

One ECOtality executive blamed the company’s financial troubles on Read, who, the executive said, “offered no leadership and either directly or indirectly […] squandered or pocketed all the government money.”

News of a possibly bankruptcy filing had been swirling since August, so it was only natural that investors were waiting in the wings Tuesday with a class action lawsuit. According to The Wall Street Journal’s MarketWatch site, the suit alleges that the company knew its finances were dire long before disclosing any negative information to investors

Does that mean the U.S. government, which got had on its $115 million deal, can prosecute?

Despite some Congressional criticism and a Labor Department probe into its payroll practices, that’s a moot question. The Obama Administration, which has vetted speculative green energy ventures in doling out the stimulus money, isn’t likely to take an adversarial position against its own failed policies.

Ben Bullard

Reconciling the concept of individual sovereignty with conscientious participation in the modern American political process is a continuing preoccupation for staff writer Ben Bullard. A former community newspaper writer, Bullard has closely observed the manner in which well-meaning small-town politicians and policy makers often accept, unthinkingly, their increasingly marginal role in shaping the quality of their own lives, as well as those of the people whom they serve. He argues that American public policy is plagued by inscrutable and corrupt motives on a national scale, a fundamental problem which individuals, families and communities must strive to solve. This, he argues, can be achieved only as Americans rediscover the principal role each citizen plays in enriching the welfare of our Republic.

Facebook Conversations

Join the Discussion:
View Comments to “Another Stimulus-Backed Green Energy Company Goes Broke”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.